Revolut Enters Australian Banking
Revolut Bank Australia Launches Under APRA Licence, Offering New Banking Services
Anonymous
Key Points
1
Revolut Bank Australia is the first Asia-Pacific licence winner for Revolut and only the second time the group has secured a non-European banking licence outside the UK, with about 1.2 million Australian customers at the time.
2
Deposits are now protected under the Australian Government's Financial Claims Scheme up to $250,000 per account holder per institution, reflecting a shift to direct deposit-taking under APRA rules.
3
Lending and credit-card products are being offered directly through Revolut's own app/website with no broker-distribution channel.
4
RevPoints rewards program includes transfers to 44 airline programs and gift-card options; savings accounts calculate and pay interest daily; no minimum monthly deposits; no withdrawal penalties.
Revolut has won a full banking licence in Australia, allowing it to take deposits directly and challenge the country's Big Four banks. The UK fintech giant, valued at $75 billion, will invest nearly AUD 400 million over five years to build out savings, lending, and credit products, according to Financial Times.
The licence, granted by the Australian Prudential Regulation Authority (APRA), makes Revolut Bank Australia the company's first banking licence in the Asia-Pacific region. Revolut already had about 1.2 million Australian customers before the launch, according to Savings.com.au.
What Revolut Bank Australia Is Offering Right Now
Revolut Bank Australia is launching with two products straight away. The first is an instant-access savings account paying up to 5.05% interest, calculated and paid daily. There is no minimum deposit and no penalty for withdrawals. The second is a no-annual-fee credit card with limits up to AUD 35,000, according to Savings.com.au.
Customers' deposits are now protected by the Australian Government's Financial Claims Scheme, up to AUD 250,000 per account holder. That protection only became possible once Revolut secured its APRA licence and became a regulated authorised deposit-taking institution (ADI) — essentially a fully licensed bank under Australian law.
Existing Customers Moved Automatically to the New Bank
Revolut's 1.2 million Australian customers do not need to do anything. The company is migrating existing accounts automatically to the new Revolut Bank Australia entity. The shift means customers move from a payments product to a fully regulated bank account, with all the protections that come with it, according to Financial Times.
Revolut is also not using brokers to sell its credit card or lending products. Everything is offered directly through the Revolut app or website. The company's RevPoints rewards program gives users access to 44 airline loyalty programs and gift card options.
Revolut Takes Aim at Australia's Big Four Banks
Australia's banking market is dominated by ANZ, Commonwealth Bank, NAB, and Westpac. Revolut is betting that its lower fees, higher savings rates, and global multi-currency tools can pull customers away. Financial Times reported that Revolut's $75 billion valuation gives it the firepower to absorb losses while it builds scale.
Revolut has used a similar playbook in Europe. It secured a UK banking licence and later one in Ireland before expanding product ranges in both markets. The Australia licence is only the second non-European banking licence the group has ever won, making it a significant milestone in the company's global push, according to Law360.
A Long Road to APRA Approval Finally Pays Off
Getting an APRA banking licence is a slow and demanding process. Regulators require firms to prove they have strong capital buffers, governance structures, and risk controls. Revolut had already been operating in Australia under a more limited payments licence before this upgrade, building its customer base to over one million in the process, according to Savings.com.au.
The approval signals APRA's confidence that Revolut meets Australia's strict banking standards. ShareCafe noted the news landed alongside broader shifts in Australia's financial sector, with the country's competitive fintech landscape now set to intensify further following Revolut's full market entry.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
33
Articles
6
Reach
39
A
AnonymousAuthor